BUSINESS

Port Users Protest Demurrage Fees as Mombasa Congestion Drives Up Trade Costs

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KPA personnel inspecting containers at the Port of Mombasa. PHOTO/@Kenya_Ports/X
KPA personnel inspecting containers at the Port of Mombasa. PHOTO/@Kenya_Ports/X
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Clearing agents and other port users have protested against continued demurrage and detention charges by shipping lines, warning that the fees are pushing up the cost of doing business and fuelling higher commodity prices across the country.

The protest is being led by the Kenya International Freight and Warehousing Association (Kifwa), which represents clearing and customs agents, freight forwarders and warehouse operators.

The lobby said shipping lines are charging for both demurrage and detention on empty containers even when delays are caused by congestion at the Port of Mombasa and a lack of space at designated empty container depots.

Kifwa argued that agents are being unfairly penalised for operational failures beyond their control. According to the association, empty container depots in and around Mombasa have been full for weeks, forcing transporters to queue for up to five days in an attempt to return empties, only to be turned away due to lack of space.

The situation, Kifwa said, has placed severe financial pressure on clearing agents, freight forwarders and transporters, disrupted inland cargo movement and slowed down supply chains. The additional costs are ultimately passed on to importers and consumers, making essential goods more expensive.

At the Port of Mombasa, free detention periods for empty container returns vary depending on cargo destination. Local cargo is typically allowed between nine and 14 days, while transit cargo may take between 30 and 52 days. Once this free period expires, shipping lines begin charging detention fees for containers outside the port, while demurrage applies to containers that remain within the terminal.

In recent months, Mombasa Port has experienced heavy congestion due to increased imports and higher volumes of transhipment cargo.

At the same time, off-dock empty container depots have reached capacity, worsening delays in returning empties and triggering penalties.

Demurrage charges currently range from about $13 (ksh 1,677) to more than $100 (Ksh 12,900) per container per day, depending on the shipping line, container size and length of delay. Kifwa has described these charges as unjust and unlawful, arguing that shipping lines should not profit from their own inability to handle empty containers.

The association is demanding an immediate suspension of all demurrage and detention charges where attempts to return containers have failed due to depot congestion. In a formal appeal to shipping lines, Kifwa national chairman Fredrick Aloo called for the suspension to apply retroactively to the point when the crisis became widespread.

Kifwa is also pushing for clearer and more transparent communication from shipping lines and depot operators. It wants a daily updated system that informs freight forwarders about depot status, acceptable return windows and available space, to reduce wasted trips and further congestion.

Solution

In addition, the lobby has proposed a temporary joint solution involving Kifwa, the Kenya Transporters Association, the Kenya Ports Authority (KPA), the Kenya Maritime Authority and other stakeholders.

The proposal includes setting up temporary overflow yards for empty containers or introducing a staggered appointment system to ease pressure on depots.

Aloo warned that failure to act would force agents to formally dispute demurrage invoices, escalate the matter to the Competition Authority of Kenya and other regulators, and pursue collective legal action to recover what they consider unlawfully charged fees.

On the other hand, the Kenya Ship Agents Association (KSAA) has attributed the empty container crisis to slow and inefficient operations at the ports of Mombasa and Dar es Salaam. KSAA states that shipping lines are incurring heavy losses due to delays in vessel berthing, high daily operating costs, and charter expenses.

According to KSAA, demurrage on vessels ranges between $20,000 (ksh 2.6 million) and $50,000 (Ksh 6.5 million) per day, depending on vessel size. The association says ships often leave Mombasa without loading full tonnage, with some vessels being ordered to vacate berths before completing cargo operations.

The Shippers Council of Eastern Africa (SCEA) has urged all parties to urgently engage and prioritise the evacuation of empty containers.

The council has proposed allowing vessels extra time at berth to load empties as part of the solution.

Kenya Ports Authority managing director Captain William Ruto has acknowledged that Mombasa is facing a serious shortage of storage space, with containers choking the port.

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